Wheat Prices Decline Amid Ongoing Ukraine-Russia Negotiations

The wheat market is experiencing a downturn as of Tuesday afternoon, with several contracts dropping by double-digit figures. Chicago SRW futures have decreased by 6 to 7 cents in the nearby months. Meanwhile, Kansas City HRW contracts have hit a low of 9 to 10 cents. MPLS spring wheat prices are also down, showing a drop of 4 to 5 cents.

In the midst of renewed negotiations aimed at securing a ceasefire, Russia and Ukraine have come to an agreement to guarantee safe navigation in the Black Sea. This provision is similar to the earlier Black Sea Grain Initiative, and both sides have agreed to prohibit attacks on energy facilities.

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Recent individual state Crop Progress reports indicate that Kansas winter wheat is rated at 49% good to excellent, a 1% increase, while the Brugler500 index rose by 3 points to 334. In Texas, wheat ratings improved by 3% to 31% good to excellent, with a rise of 5 points on the Brugler500, resulting in a score of 288.

SovEcon has revised its 2024/25 Russian wheat export forecast, lowering it by 1.5 million metric tons (MMT) to 40.7 MMT, while increasing the 2025/26 projection by 0.2 MMT to 39.1 MMT. According to data from the European Commission, EU soft wheat exports since July 1 have reached 15.46 MMT, significantly lower than 23.75 MMT during the same time last year.

May 25 CBOT Wheat is now at $5.42 1/4, down 6 cents.

Jul 25 CBOT Wheat stands at $5.58 3/4, down 6 1/2 cents.

May 25 KCBT Wheat is priced at $5.68 1/4, down 9 3/4 cents.

Jul 25 KCBT Wheat is at $5.84, down 9 cents.

May 25 MGEX Wheat is at $5.87 3/4, down 4 1/2 cents.

Jul 25 MGEX Wheat is at $6.04 3/4, down 4 1/2 cents.

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy
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